For the 2 following scenarios explain how the person was able to embezzle (what procedures would they have completed in or outside ?), and how you could set up better internal controls in QBO to prevent future embezzlement.

Scenario 1:

A former motel clerk has pleaded not guilty to taking more than $17,000 in room refund cancellations. Twenty-eight-year-old Kaileigh D was in court Monday. She had worked at the motel from November to April. Police say she refunded room cancellations back to her personal bank account. She pleaded not guilty to embezzlement and grand larceny. The Police Chief said in an affidavit that Kaileigh, a single mother with bills, said she had been running an online business that slowed. She said she intended to pay the money back.

Scenario 2:

A woman was indicted in federal court late last month on a charge that she embezzled more than $2 million over 10 years from her employer, according to a news release from the U.S. Attorney's Office. Jennifer D pleaded not guilty to the charge that she stole from Northeast Agriculture Sales Inc., where she worked as a bookkeeper from approximately 1998 to 2017. Northeast Agriculture Sales is a family business.

Jennifer’s job duties there included customer billing, handling company accounts and managing the payroll system. According to the indictment, she used unauthorized electronic transfers to move funds from the company’s payroll account to her own checking account, totaling $2,221,079.47, according to the prosecutor's office. Jennifer allegedly used this money for online gambling and to repay personal debts. Her indictment includes a forfeiture notice, meaning the government intends to seize any property she derived from the embezzlement.

Answer rating: 100% (QA)

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